Indonesians Spend Rp175 Trillion in Personal Funds on Healthcare

TEMPO.CO, Jakarta - Indonesia’s Financial Services Authority (OJK) says a significant share of the country’s healthcare spending is still borne directly by households, highlighting gaps in insurance coverage.

Head of OJK’s Executive Board, Ogi Prastomiyono, said 28.8 percent of total healthcare expenditure, equivalent to around Rp175 trillion, is paid out of pocket by the public.

“There is still a significant portion of the population that has not utilized health insurance products, including BPJS or commercial health insurance, with 28.8 percent of total healthcare spending still being paid out of pocket, amounting to Rp175 trillion,” Ogi told reporters in Jakarta on Monday (April 13, 2026).

He attributed the high out-of-pocket costs to the low uptake of health insurance, both from the national health scheme (BPJS) and private providers.

Ogi said OJK is currently coordinating with the Ministry of Health to reduce the burden on households. At present, commercial insurance accounts for only about 5 percent of total healthcare financing.

OJK hopes more people will turn to commercial health insurance to reduce reliance on personal funds for medical expenses.

“Of course, they need to evaluate the pros and cons, and consider how the process can be made more efficient and better,” he said.

Meanwhile, the Indonesian Life Insurance Association (AAJI) reported that total insurance claims paid in 2025 reached Rp146.73 trillion for around 9.59 million beneficiaries, down 7.8 percent from the previous year due to a 19 percent drop in surrender value claims.

In contrast, health insurance claims rose by 9.1 percent to Rp26.74 trillion, covering both individual and group policies.

“Health insurance has become one of the focus areas for the transformation of the life insurance industry in 2026. With the implementation of POJK Regulation No. 36 of 2025, it is hoped that health claim management will be more controlled while improving protection for policyholders,” said AAJI’s Head of Training and Human Resources Development, Handojo Gunawan Kusuma, in a March 13 statement.

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